How Tariffs Are Already Shaping Tech - DTNSB 4990
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This is the Daily Tech News for Thursday, April 3rd, 2025. We tell you what you need to know, follow up on the context of those stories, and help each other understand.

Today, Tom Merritt tells us about the first smartphone and we read one of your emails. That's right, we do. I'm Jason Howell. I'm Huynh Huynh Dao. Let's start with what you need to know with The Big Story.

So, look, I am not an economist. I'm not too keen usually on Wall Street heavy stories, but the tariff news is a pretty big deal in the world of technology. So we are going to do our best to give you the facts and talk a little bit about this. The U.S. president announced new tariffs on imported goods ranging between 10% to 49%.

leading technology stocks to see a very dramatic decline in response. Tech-heavy Nasdaq, for example, dropped more than 5% on its way to its worst session in more than five years. Apple, as one example, has so far been hit the hardest, a near 9% drop, its steepest drop since 2020.

meta and amazon both fell more than seven percent each nvidia and tesla dropped more than five percent all this to say technology stocks getting hit hard and that drop is being attributed by many to a broad market sell-off that's triggered by fears of yes a trade war that phrase we keep hearing about and a reaction to foreign manufacturing and assembly within u.s companies because as we know u.s companies have relied heavily on this to date

If these tariffs stay in place, some economists say the tech industry is likely to see increased manufacturing and production costs, higher price goods for consumers, and prolonged uncertainty in the market. Now, I say some economists because depending on where you sit in this story, which is a complicated story, some are like, this is the big...

kind of awakening. Others say, oh my goodness, what are we in store for? And I think a big part of this is the U.S. presidential administration's belief that U.S. consumers will be okay paying more for made in America products

And I think the question that I have around this, I don't expect you to have the answer when, but it's just kind of something that's occurring to me is if a company like Apple relies on China right now for large parts of its manufacturing, switching to US production isn't going to happen immediately.

That could take years to transition. The prices immediately spike because the tariffs are in place. And I'm wondering if we're witnessing, at least for now, a pause or an end of the current value paradigm that we've gotten used to with tech products in the US. We're used to a certain thing. And now it seems like things are probably going to shift as a result.

No, I think that's absolutely fair. And it's really hard. I am also not an economist, neither am I someone who can see very far into the future, if at all. And so we'll have to see, you know, ultimately whether this ends up being a positive thing, of course, whether this encourages, you know, domestic manufacturing production. I do agree with you that this probably will kind of change how we feel about, you know,

consumer tech in the short term, it just, I just don't see how as, as a consumer myself and probably one who's a very generally enthusiastic consumer, maybe too enthusiastic. I can't, I can't help but see this would change at least me as a person, you know, living in this world and a tech enthusiast that this would change because yes, our, it seems, it seems very, you know, un,

controversial to say that a lot of our tech, the American tech industry is built on foreign materials, foreign manufacturing. And

the costs, these tariffs will eventually find their way to us. And it's really interesting because I feel like there's so many different products, like tech products that we have, not necessarily the big ones, like your phone, your laptop, but even like small things like earbuds, things like that have become almost commodities, right? That we, you know, there's like in tech at all different levels have a certain level of commoditization, right?

And maybe, yeah, maybe this will shift. And we talk about on our other show all the time about, you know, at least with smartphones, you know, given the economic climate, before all this happened, people are starting to, with everything that has happened in the world in the last like five to 10 years,

hold on to their smartphones at least because they are big purchases depending on, I guess, what range you're in. They tend to be bigger purchases. And so people have leaned towards holding on to tech longer, demanding more longer support cycles. And so I feel like for something that is already relatively a large purchase for most people, that with this in the short term, however long that is, again, not an economist, months, years, that maybe we'll start looking at the more commodity products a little bit differently because...

Yeah, like, well, maybe tech will be less disposable. If that's what you were going for, sorry, but that's kind of like where I was kind of thinking that, yeah, no, maybe I might look at things a little differently. Like the tech, yeah, the tech in my house, because the cost will rise as we see how this all ends up.

Yeah, 100%. I mean, I think that's a really good point that you brought up that I hadn't really considered is, you know, just taking the, you know, because you and I, we are steeped in the world of Android. So it's kind of hard not to think about this through the realm and through the purview of like smartphones as one, as just one kind of microcosm of the technology industry.

And we talk a lot about the different levels and categories of smartphones. Is this budget? Is this mid-range? Is this premium? You know, and then there's lots of little scales in between there. And the pricing that is associated with those scales has been pretty, you know, similar over time. Mid-range, you're talking $500 to $700 budget, you know, $100 to $300 to $400, somewhere around there. And then premium, you know, upwards of $1,000, if not more for

And I'm really curious after you saying that to kind of see like, how does this impact that value, the value of where these smartphones, and again, just as one example of technology, the impact on technology, but what does that do to that particular aspect of,

of the technology industry and is, you know, how does that then translate to all the other things that you talk about that, you know, that are kind of commoditized in the world of technology right now that we're so used to getting earbuds that cost...

$149 or $79 or whatever. I mean, I think this actually ties into another piece of related news that certainly kind of plays in a similar field that you're talking about just real quick. An executive order was also signed to eliminate the de minimis exception. That's what allowed US consumers to import goods from China and Hong Kong under $800 duty-free. So the Xi'an, the Timu, even eBay, Etsy,

They're all going to see potentially an immediate impact here as well. When I think about these low cost, you know, earbuds as another example, that's something that's suddenly, you know, I think the value proposition there shifts dramatically because those prices go up.

Yeah, that's a really great point too. And that's, I think also an important piece of this. And I mean, even just again, thinking about the entire ecosystem of affordable, you know, and again, sorry to bring it back to smartphones, but that's kind of the world that we live in all the time. Is imagine like just going on Amazon and thinking of all of the affordable, you know, the ecosystem of affordable accessories and, you know, all that, all that whole little micro ecosystem is,

A lot of those products, and I think like the majority of those products that I personally bought, for example, off Amazon, have been imported from China. So now that the... Sorry, de minimis. De minimis. De minimis. Now that that has been eliminated, so I believe there's no tariffs on if the price was like under $800 worth of goods. Is that something like that? I'm sorry. Yeah, that's it. Can you imagine how that would change? Like, I don't even...

It's just so interesting because I, it's hard to say because I mean, we'll obviously all survive if we can't get our multi MagSafe chargers and multi, you know, function, you know, our, you know, various cases that we'll probably find a way to survive. But it's so interesting just to see how that might impact how people buy phones, how people buy all the accessories, whether, I don't know, like all these little interesting facets of modern technological lifelike.

I don't know. Even like the way that people mount their phones, use their desktop setups and everything. It's interesting how that all might be impacted because we are so used to these low price goods being imported. So I don't, yeah, it's hard to tell what's going to happen now.

But yeah, it's a really good point. Yeah. I think the overall advice that we could give on a consumer level that I could give anyways is if you have plans to buy some tech, maybe now's a good time. Yes. As in like today. Today.

Go ahead and get it. I do wonder, and we're going to talk about this at the top of the briefs. I wonder how this impacts Nintendo and the Nintendo Switch too. Oh my gosh. Because literally they announced the device and then like hours later, the tariffs are announced. And I mean, immediately, like every, you know, the mathematics involved in any of, you know, the calculations that Nintendo did shift dramatically to say the least. So we'll see. Yeah. So-

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Well, the hands-on embargo for the newly announced Nintendo Switch 2 lifted this morning. Previewers see a big improvement in the larger display and notable performance upgrades with the custom NVIDIA chip.

The redesigned Joy-Con 2 controllers are considered more comfortable, particularly for larger hands, with a satisfyingly strong magnetic attachment system, though players are torn on the practicality and comfort of the mouse control's functionality. The game chat feature is widely seen as a major boon to the online play experience. Overall, most reviewers agree that the Switch 2 is a big step up in terms of size, display quality, and performance.

Yeah, and I know you both talked at length about the Nintendo Switch 2 yesterday, but it's interesting, you know, that now we have a whole host of people who have had at least a short amount of hands-on time. I think they didn't get very much. I think they got like an hour, if I'm not mistaken. Oh my gosh. Enough to get like a basic sense of like what's going on here and sounds like they're pretty excited. Yeah.

Yeah. I mean, I think the things that would definitely matter, I think most to me, are things that you could probably get a good feel for in an hour and like literally the feel, right? And isn't it funny? Like I feel like mag... I know magnets have been around forever, but it feels like tech in the last two to three years have really, you know, MagSafe and like that whole ecosystem. Magnets are back and they're in... Magnets are back, baby. And so like, so, but so things like, yeah, just even like the...

What would be mouthfeel, but for technology? Like, I don't know. That's an interesting question. Sorry. I've never pondered in my life, but I would love to know the answer. I didn't mean, don't put your joy cons in your mouth. That sounds like a terrible idea and something that you would see a warning for. But just like the feeling. Definitely don't put the Switch games in your mouth because they taste sour is what I'm told. But yeah, just, I like the bigger screen.

And even like the satisfying, you know, feel, let's say the tactile, the tactile experience. Thank you. There we go. Not mouthfeel, tangible experience of the controllers. I'm very delighted. I think that's just the thing that we've all been hoping for, just a beefier updated Switch 2. And it sounds like on first glance, that's what people are getting. Sounds like you're gonna get it. Agnitsa back, baby.

Google's Notebook LM is getting a new discover feature to allow users to describe the type of sources they are looking for and let the tool loose on the web to find them. In fact, I asked Notebook LM to gather switch to hands-on articles as the source for the roundup that we just discussed.

I have access to it on one of my two accounts. I was surprised to find. Anyways, it was good for research. Notebook LM searches through hundreds of potential web sources in seconds and then brings back up to 10 recommendations, including the reasoning behind why it feels those sources are relevant to what you're asking for. The new features rolling out now should hit all accounts within a week. I feel like it's a briefing section, Jason. You used one story to write another story. I love it. You know.

Well, Google has announced a leadership change to its AI division with Sissy Hsiao stepping down as head of the Gemini AI chatbot team. Josh Woodward, an influential force in the development of successful and above mentioned Notebook LM tool and Project Mariner will take over the role. No word on why Hsiao is vacating the role, though she plans to take a short break before returning to a new unannounced role.

I mean, we've been talking a lot about restructuring happening in Google and this is just kind of a big part of that. There's a lot of change happening inside of Google right now. But Sissy's great. I'm sure she'll find a really awesome role to go to from here.

A federal judge has permanently blocked Arkansas' Social Media Safety Act, a 2023 law that required social media companies to verify user ages as well as obtain parental consent for those under 18. It was ruled unconstitutional, overly broad, and a violation of First Amendment rights. The ruling marks a significant victory for digital rights advocates in the U.S.

Amazon is set to launch the first full batch of 27 satellites for its Project Kuiper Space Internet Network on April 9th, with the intention of offering its low-Earth internet service to the public later this year. Though Amazon has contracted with SpaceX for infrastructure needs with some of its launches, Project Kuiper is seen as a direct competitor to Starlink satellite internet services.

Yep. Amazon competing. It's interesting how, you know, how they're on one hand they're in bed together and on the other hand, they're arch nemesises. Nemeses? Nemeses. I like nemeses. That might not be appropriate, but yeah. Okay. Sounds a little bit better anyways.

Not perfect. We'll work on that. Sony's 2025 Bravia TV lineup now has three new models, all running Google TV, targeting different market segments. Flagship Bravia 8 II QD OLED brings improved brightness and AI-driven scene recognition. Behind that, the Bravia 5 is a mini LED TV with sizing all the way up to 98 inches. And finally, the entry-level Bravia 2 OLED.

Two, that's the number two, followed by two I's to represent two also. I don't know how you say that all that. Do you say Bravia 2-2? Anyways, is a direct lit LED that's expected to be budget friendly. There is no official pricing or even availability released yet, but the new sets are expected to release sometime this spring. Naming is hard. Naming is just so hard. Yeah.

Well, on that note, Intel has refreshed its iconic Intel Inside campaign from 1991 with a new slogan. That's the power of Intel Inside was introduced at the company's Vision 2025 event with a company looking to tie its brand identity to user experience and the role its machines and chips play in the technology landscape today. I mean...

Intel, it's kind of, I mean, isn't that kind of the same thing? I kind of had that thought too. Let's just add a couple of words to it. Yeah. They just judged it up a little bit, add a little bit of like bling to it, sort of like verbal bling to it. Like that's the power of it. Anyway. Yeah. When I was at, when I was in Barcelona at Mobile World Congress, I stopped by the Intel booth and they had up on the wall, AI inside something, something. And I was like, oh, that might be their, their next thing. But no, they stuck with Intel inside. Okay. Yeah.

Well, those are the essentials for today. Let's dive a little deeper in the ongoing stories and follow up. Well, speaking of smartphones from our discussion a little earlier, the iPhone wasn't the first smartphone. No, neither the Palm Trio or even the BlackBerry. And our friend Tom Merritt has an explanation. An iPod, a phone, and an internet communicator. An iPod, a phone. Are you getting it?

Steve Jobs said those words at Macworld in San Francisco in 2007, right before introducing the world to the first iPhone.

The product has gone on to fundamentally change how we live. Almost everything people do can be done on a smartphone. And some things must be done on a smartphone. People pay bills, buy movie tickets, register their identities, and more. You'd be forgiven for thinking that the smartphone began in January 2007 with that iPhone announcement. And in many ways, you'd be right to think so. The modern black slab with a glass multi-touch screen was born then.

Some of you, though, may have been fans of BlackBerry or Palm devices, smartphones that predated the iPhone. They look odd now, with small screens, no multi-touch, physical keyboards, but even BlackBerry and Palm were not the first. The spark that led to the fireworks of innovation represented by the iPhone started much farther back on November 16th, 1992.

It didn't take place in Silicon Valley or Bletchley Park. It didn't involve a stalwart engineer from Cambridge or Stanford. It starts with a Florida man and what he did in Las Vegas.

Now, jokes about the Florida man have traveled around the world. In 2015, the Daily Express documented the fiascos of Florida man, assuring the public that unlike the questionable taste of jokes about people from Essex, every Florida man story is true and ripped from the headlines.

Now, given these memes, when I tell you that Frank Canova was born in a suburb of Jacksonville, Florida, some of you are going to jump to conclusions. I hasten to point out he got a bachelor's degree in engineering at the Florida Institute of Technology, which is the alma mater of at least six astronauts. Even so, you might still wonder what a Florida man in Las Vegas on November 16th, 1992 might be showing people. I might be tempted to respond, well,

A fax machine, a phone, and a stock ticker. Are you getting it? You see, Canova worked at IBM, and he and co-engineer Jerry Merkel had noticed that microprocessors had got small enough to fit in a handheld device. Merkel pitched his boss on the idea of a cordless phone that could use PC chips to run services. They put a prototype together and showed it off at Comdex in Las Vegas. It could send and receive calls, of course, fast.

faxes, and even do email. It also included a calendar, an address book, notepad, and relatively new digital services like maps, stocks, and news. This is in 1992. The day after the prototype was first demonstrated at Comdex, the national newspaper USA Today put a photo of Canova holding the prototype on the front page of its money section.

In contrast to how Xerox reacted to some of its own innovations, IBM approved the commercialization of this product. Now, at first, IBM wanted Motorola to build it, but Motorola didn't like the competition to its own phone. So instead, IBM went with Mitsubishi, which contributed its own wireless technology to improve the device.

The telephone company Bell South agreed to sell the device and even gave it a new name, the Simon Personal Communicator. A year after debuting at Comdex, the Simon was showed to the public at the Wireless World Conference. The conference took place in Florida, went on sale in August 1994 in 15 states for $1,099 or the low, low price of $899 if you committed to a two-year service contract. Bell South sold 50,000 of them within six months.

within the six months it stayed on the market. Unfortunately for Simon, it was both ahead and behind its time. The capabilities were truly advanced, but the battery lasted an hour. Motorola had been right to focus on its own phones. Motorola flip phones were much smaller and cheaper, and the battery lasted a lot longer, even if they couldn't send faxes. After the Simon went off the market, Canova continued to work on similar ideas about putting connected information into a handheld device. In

In January 1997, he joined Palm, where he became head of engineering for the increasingly popular new Palm Pilot. It was good timing, too. Palm was about to do to one of its rivals what Motorola had done to the Simon. Palm made the Personal Digital Assistance, or PDAs. They didn't have the wireless connectivity of a phone, but could store notes and recognize handwriting. And because they didn't have to have the connectivity, the battery lasted longer.

Apple had made the idea famous with its Apple Newton, but the Newton also became somewhat of a byword for flop. The Newton never got over its bad reputation for handwriting recognition, even though technologically it got over its bad handwriting recognition. The Palm was cheaper and arguably easier to use, even if it did not have all of the Newton's features.

The Newton sold for $699 or more, and the Palm Pilot cost $129 at first. When Steve Jobs returned to become CEO of Apple in 1997, he canceled the Newton. Palm won. Or did it? While successive versions of Palm PDAs continued to sell well, people still focused on Apple, regularly asking Jobs if he would bring back the Newton. Are you going to bring back the Newton when you bring back the Newton? You want to bring back the Newton?

Part of the Newton's handwriting recognition system, a part that had worked well, showed up in the Macintosh operating system in 2002, and when that happened, conspiracy theories flew. That same year, Palm put its PDA software in a cell phone called the Palm Trio. It had phone connectivity and a full keyboard.

I mean, what's to compare? There's a piece of an old PDA in an operating system versus a smartphone with a full keyboard? 2002 also happens to be the year that a Canadian company called RIM put out its first phone. RIM developed its BlackBerry devices out of its pager business. Early BlackBerrys were basically pagers that handled email. BlackBerry was so good at the email part that it actually also licensed its technology to Palm to be used in the trio.

Still, people kept asking Apple about phones and PDAs. The first hint that it might be up to something is retroactively obvious, but few people noticed when Apple secretly acquired a small company called Fingerworks in 2005.

Apple does this all the time, acquiring small companies that don't immediately appear to be related to its products, and sometimes they never are. Fingerworks was developing the idea of multi-touch. A regular touchscreen responded to your touch one finger at a time. A multi-touch screen could respond to multiple points of touch at the same time. That meant you could do things like pinch to zoom.

The technology had been in development since the mid-1970s. Fingerworks, however, won awards and got a lot of good press for their implementation, but nobody had taken up its line of input devices. It had done keyboards and trackpads and mouses with multi-touch. Apple took that technology and put it in the phone, or more accurately, made it the entire interface for the phone. The iPhone was the first major cell phone release to not even have a number keyboard.

It took a while for people even to discover that Apple had bought Fingerworks. And then new rumors about Apple making a phone blended into those old ones about PDAs that dated back to the killing of the Newton. Apple seemed focused on its successful music player, though. The iPod had arrived in 2001, was a huge hit.

BlackBerry and Palm seemed dominant in connected devices and smartphones. He didn't acknowledge it publicly at first, but Steve Jobs noticed that people liked all three devices. The music player, the phone, the connected device. The ingredient that brought it all together was that multi-touch screen. He combined them all into one phone, called it the iPhone. The best known smartphone yet. And just as a little coda to this story...

In April 2024, it acquired 4,181 square meters of office space in an office building just south of Miami, Florida. It's probably nothing, but keep your eyes open if anyone from there is planning to show something off in Las Vegas.

If you have feedback about anything that gets brought up on the show, get in touch with us on socials at DTNS show on X, formerly Twitter, Instagram threads, blue sky and Macedon at Macedon. Social for Tik TOK and YouTube. You can find us at daily tech news show. Strap in you're in the race with F1 TV premium. See what the race director sees with custom multi-view.

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We end every episode of DCNS with some shared wisdom. Today, Mark Wansel is helping us understand. And yes, before we get to the email, I realized the topic of mandatory sign-in on Windows 11 is a little old at this point. I think we talked about the story on Monday and had a follow-up on Tuesday. But this is a good counterpoint. I thought it was worth noting. So, Wynn, take it away. Well, Mark writes, Hello, team. I'm going to push back a little on the Microsoft account requirement for Windows.

Putting aside Shannon's excellent example of an air-gapped machine, in the world of zero-trust security, identity is paramount. Without strong identity, it is very difficult to secure endpoints. Very few people will be able to set up a local authentication server with regular multi-factor authentication, let alone a phishing-resistant multi-factor authentication. For the vast majority of users, the Microsoft account is probably a good idea.

You know, it's a counterpoint. I understand this is probably one of those topics that people are going to feel very strongly about on either sides, and you're probably not going to make everybody happy either.

I guess that's just life. And Microsoft Windows. That's right. Thanks to Tom Merritt, of course, for creating everything that we do on a daily basis with Daily Tech News Show, of course, but also today's cool little segment there. Thank you to Mark for writing in, Mark. I appreciate your perspective and contributing to today's show. And thank you for being along for Daily Tech News Show. The show is made possible by our patrons...

patreon.com slash DTNS. DTNS has a live version as well called DTNS Live. That's on YouTube and Twitch. And you can find details on that and everything else on dailytechnewsshow.com. We'll talk to you tomorrow. The DTNS family of podcasts. Helping each other understand. Diamond Club hopes you have enjoyed this program.

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